Small Business Owners’ Mileage Deduction

Why do you need an IRS-proof mileage log?

If you are self-employed, an independent contractor, freelancer, consultant, sole proprietor, a partner in a partnership, or a member of a limited liability company that is taxed as a disregarded entity that just qualifies you to be called a small business owner. 

According to the IRS, depending on the form of your business you’re required to pay a few different forms of taxes, but you can also deduct your business-related expenses. Such as travel and transportation.

However, you need to prove that these expenses are actual business expenses. So you need a mileage log for your business mileage deduction. 

Your mileage log must include a record of:

  • the total mileage you drove in the tax year for business, commuting, and personal driving other than commuting
  • first and last odometer reading of the year (recording them monthly is recommended) 
  • the dates of your business trips
  • your starting point and your destination of each trip
  • the name of your business partner you’ve visited
  • the address of the business partner you’ve visited
  • the mileage you’ve driven between your business partners, one by one
  • the daily total mileage you drove
  • the monthly total mileage you drove
  • the purpose of your trips: business, personal, commute, medical, moving, charity, etc
  • the standard mileage rate effective in that year (if your mileage log is calculated based on that number)
  • all data related to refuelings or charging
  • the ratio of your business and personal trips

It is not worth underestimating the importance of a mileage log, as you could pay serious fees in the event of an IRS Audit.

It is possible to keep a mileage log on paper, but in our experience, it is very time consuming and most businesses have problems with creating an IRS-proof log, especially if they need to be retrospectively reconstructed. It is easy to forget to keep track of where you have been, and reconstructing mileage logs retrospectively involves a lot of administration that nobody wants to undertake.

You don’t have to give up on claiming your tax deduction, you just have to choose the right mileage log software!

Imagine a web dashboard and app solution that calculates the distance between your partners for you, which makes it easy for you to determine the ratio of your business and personal trips, and which can quickly reconstruct mileage logs retrospectively!

Using MileageWise is easy: just track your trip on the go with the mileage tracker app and/or use our web dashboard on your computer – and at the end of the month you will get an automatic recommendation for your missing trips with our AdWise feature!

And on top of everything, because of the AdWise feature, completing or reconstructing your logs even retrospectively only takes 7 minutes a month! After specifying a few parameters (and fixed points), the feature generates a recommended mileage log – while monitoring 70 logical conflicts -, which you can edit before handing in to the IRS.

How your ideal mileage log software should look like:

  • Nice and logical interface to guide you through the tasks, you don’t need to understand the underlying rules or the operation
  • Equipped with a web dashboard, available anywhere, on any device
  • Passing any IRS Audit
  • Excel import option for your partners/trips/refuelings
  • Recurring daily trips option for recording your usual trips in advance
  • With an additional Android and iPhone mileage tracker app
  • With an intelligent AdWise feature for forgotten trips
  • Quick recording of any forgotten trips
  • With an algorithm monitoring over 70 different logical conflicts
  • Automatically paying attention to compliance with the laws of the period
  • With constant development and continuous software updates
  • Expert customer service available on weekends too – answering the phone immediately during office hours!
  • The service is delivered by a company with 15+ years of experience, on this field exclusively

MileageWise is like that! 🙂

Furthermore, if the web dashboard and the app are not enough, save your time and have our experts prepare your recommended IRS-proof mileage log, which we pass onto you every month and we can even help you reconstructing your past mileage logs.

Mileage Tracker App Record your trips, refuelings, and end-of-month odometer readings with the iPhone and Android mileage tracker app! You can edit them later on the web dashboard. More about the app
Apple App store
Google Play store